Gap Between U.S. Income Taxes Owed And Paid Set To Keep Growing

The amount of tax money owed but not paid to the IRS is projected to continue increasing, as indicated by estimates released by the federal tax collection agency, as per a report presented by Wyatte Grantham Philips for the Associated Press (AP).

For tax years 2021 and 2020, the most recent years for which the IRS has provided estimates, the projected gross "tax gap" surged to $688 billion and $601 billion, respectively.

For tax years 2021 and 2020, the most recent years for which the IRS has provided estimates, the projected gross "tax gap" surged to $688 billion and $601 billion, respectively.

These figures represent a substantial increase when compared to previous years, with gross tax gap projections standing at $550 billion for 2017-2019 and $496 billion for 2014-2016.

One of the IRS's most significant challenges is ensuring that individuals actually fulfill their tax obligations.

Although agency data demonstrates that the vast majority of Americans voluntarily and promptly pay their taxes, unpaid taxes totaling hundreds of billions of dollars accumulate annually, and tax gap estimates continue to expand.

IRS Commissioner Danny Werfel emphasized that the escalating tax gap estimates underscore the significance of increased compliance efforts. Part of the $80 billion allocated to the IRS from the Biden administration's Inflation Reduction Act is being utilized for this purpose.

WEEKLY FEATURE : Jose Mari Chan And The Christmas Anthem